Rent Affordability Calculator
Find affordable rent from monthly income using the 28% and 30% rules.
Returns maximum monthly rent, remaining budget, and housing cost management tips.
Rent affordability calculators help you determine how much rent you can comfortably afford based on your income, so you do not become “rent burdened” — the situation where housing costs crowd out other essentials.
The standard rule — the 30% rule: Maximum affordable rent = Gross monthly income × 30%
This rule originated in US housing policy (1981) but is widely used in the UK, Europe, and Australia as a benchmark. Spending more than 30% of gross income on rent is considered unaffordable.
Worked example: Annual gross salary: £38,000 Monthly gross income: £38,000 / 12 = £3,167 Maximum rent (30% rule): £3,167 × 0.30 = £950/month
A more accurate approach — the 50/30/20 budget:
- 50% of net (take-home) income for needs (rent, food, utilities, transport)
- 30% for wants
- 20% for savings and debt repayment
If rent alone is 50% of take-home pay, there is nothing left for other essentials.
UK reality check: Average UK rents in 2024:
- London: £2,000–£3,500/month (1-bed)
- Manchester: £1,000–£1,500/month
- Edinburgh: £1,100–£1,600/month
- Birmingham: £900–£1,300/month
For many renters in major cities, the 30% rule is impossible to meet on average incomes without roommates or subsidised housing.
What landlords typically require: Most UK landlords require annual income of 30× monthly rent. Rent of £1,200/month → income must be at least £36,000/year.
Other costs to budget for:
- Council tax (typically £100–£250/month)
- Utilities (£150–£250/month)
- Internet and TV licence
- Contents insurance